Shareholders of insurance company Lemonade (NYSE: LMND) are no strangers to volatility. The stock's price has fluctuated between $10 and $25 per share over the past year and once traded for more than $183 at one point in 2021.
Why the volatility? Perhaps Lemonade is misunderstood. It's a business that uses technology such as artificial intelligence (AI) to turn the traditional insurance model on its head. Its chatbots do away with insurance agents and conduct business through a smartphone app.
Lemonade is a new competitor trying to carve out its place in a massive and ruthlessly competitive industry full of long-standing incumbents. Despite the challenges, there is enough promise to remain interested in the stock, which could have some big-time upside if all goes to plan.
Source Fool.com